Based on the Following Cost Data,what Conclusions Can You Make

question 106

Multiple Choice

Based on the following cost data,what conclusions can you make about the costs of Product A and Product B? $\begin{array}{l}\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Total Cost }\\\begin{array}{|l|c|c|}\hline \text { Production: } & \text { Product A } & \text { Product B } \\\hline 10 \text { units } & \$ 100 & ? \\\hline 100 \text { units } & \$ 1,000 & ? \\\hline 1,000 \text { units } &{\$ 10,000} & ? \\\hline & {\text { Unit Cost }} \\\hline \text { Production: } & \text { Product A } & \text { Product B } \\\hline 10 \text { units } & ? & \$ 10,000 \\\hline 100 \text { units } & ? & \$ 1,000 \\\hline 1,000 \text { units } & ? & \$ 100 \\\hline\end{array}\end{array}$

• A) The cost of Product A is a fixed cost and the cost of Product B is a variable cost.
• B) The cost of Product A is a variable cost and the cost of Product B is a fixed cost.
• C) The costs of Product A and Product B are both variable costs.
• D) The costs of Product A and Product B are both mixed costs.

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Definitions:

Environmental Problems

Issues relating to damage of the natural environment due to human activity, including pollution, climate change, and loss of biodiversity.

Technological Forces

External factors in the environment that relate to technological advancements and innovations, impacting businesses and society.

Environmental Racism

The practice of disproportionately exposing communities of color and low-income groups to environmental hazards and pollution.

African-American Communities

Social, cultural, and geographical groupings of African-American individuals characterized by unique historical, economic, and social experiences.